Sony Group(US:SONY) Zhi Tong Cai Jing·2025-11-06 07:05Core Viewpoint - Wolfe Research analyst Peter Supino has upgraded Sony's stock rating to "outperform" with a 12-month target price of 5,300 JPY, representing a potential upside of approximately 25% from the recent closing price, indicating strong growth prospects for the company [1][2] Group 1: Rating Changes and Market Sentiment - Following the implementation of comprehensive tariffs by the Trump administration, Supino initially downgraded Sony's rating due to concerns over rising costs and weakened consumer confidence [1] - The recent upgrade reflects a shift in sentiment, as Supino now believes that Sony has effectively managed the risks and impacts on profits [1][2] Group 2: Business Performance and Financial Outlook - Sony's first-quarter results for the fiscal year 2025 showed a significant operating profit increase of 36.5% year-on-year, reaching 340 billion JPY, surpassing analyst expectations of approximately 288 billion JPY [2] - The company raised its full-year operating profit forecast by 4% to 1.33 trillion JPY (approximately 9 billion USD), aligning closely with analyst estimates [2] - The anticipated impact of the Trump administration's tariff policies on Sony is now estimated at 70 billion JPY, lower than the previous forecast of about 100 billion JPY [2] Group 3: Strategic Positioning - Supino highlights Sony's strong position in the gaming, anime, and music sectors, referring to it as a "triple threat" in a growing market [2] - The company is expected to continue its growth trajectory, improve operational efficiency, and prioritize shareholder value in capital allocation [2]